Lead Times – What does this mean?
Due to supply chain disruptions, we have been answering several questions about getting equipment placed and operational before the end of 2021. After your order is placed, there are several steps that must happen prior to shipping & installation, this brings me to the term we use to identify this, Lead Time.
Once the customer initiates the order, we begin to process the equipment. The lead time is the time it takes us to build the equipment, order/ receive ancillary equipment and deliver it to the customers location.
Several factors go into how a lead time is calculated. Some include:
- Current Orders Placed
- Supply chain disruptions
- Parts on back order
- Trucking and logistics timing
So, what does that mean for you as you are looking at moving your project along? To meet strict dates agreed on by your team, preparation and planning are the key. Plan for extended lead times and be prepared to initiate orders sooner than you may have thought. In a normal year, our lead times on extruders and presses ranges from 6 to 10 weeks. This year, unfortunately, we are seeing lead times extend beyond 14-21 weeks.
For example, if you want to have equipment delivered by the end of this year, in years past, you would initiate your order sometime in October. This year, with all the supply chain disruptions, you need to move your initiation date up a couple of months to mid-August. This is not only affecting the products that we sell here at Insta-Pro, but we have seen this across the industry which includes storage bins, electrical components and buildings.
If you are on a project timeline, consider expediting financing or contact us to provide alternate financing solutions to ensure your project is not delayed. Our team is ready to help customize a solution that works for your business.
